View Full Version : HDB Decoupling - no more?
https://www.myexclusivecondo.com/buyer-seller-must-know/hdb_decoupling/
HDB Decoupling
My Exclusive Condo Buyer & Seller Must Know
April 5, 2016
Gone are the days when a Singaporean couple could just do a decoupling on their existing HDB flat to avoid the Additional Buyer Stamp Duty (ABSD). If you have vaguely heard about HDB Decoupling, are interested to find out more or have the intention of doing it so that you pay lesser stamp duty in your next property purchase, unfortunately you are way too late.
Decoupling – The Transfer of Ownership
So, what is HDB decoupling? It is a process whereby one owner transfers the ownership of his HDB flat to the other co-owner through way of gift. By doing so, the owner who has his ownership removed from the HDB property is considered a first time residential property buyer and will no longer be subjected to a 7% ABSD for his second residential property purchase (for Singaporean).
Since 1st April 2016, transferring of HDB ownership via way of gift between spouses will no longer be approved by HDB. The transfer of ownership within a family is still possible, subject to approval by HDB based on specific eligibility criteria. Stated in the HDB infoweb, the 4 main types of transfer of flat ownership are as follows,
◾Inclusion of owners
Eg : The owners adding the name of their son/daughter to the property.
◾Withdrawal of owners
Eg : Son or daughter withdraw his or her ownership from the flat
◾Substitution of owners
Eg : Changing of ownership from one son/daughter to another
◾Outright transfer:
Eg : Parent transferring the ownership to the son/daughter.
Other than transferring by way of gift, a resale part-share can also be done between family members. By doing so, the remaining co-owner will buy over the share of the other co-owner at a mutually agreed price. Transfer of HDB flat ownership between spouses, be it via way of gift or resale part-share will only be workable in circumstances such as demise of an owner, divorce, financial hardship etc.
Previously, a lot of ‘smart’ buyers had managed to avoid the hefty additional buyer stamp duty by doing a HDB decoupling. By doing so, not only did the buyers save on their stamp duty, they also did not need to set aside a minimum sum in their CPF Special and/or Ordinary Account if they were free from any property ownership. In other words, more CPF and/or cash were available to finance their new purchase. Well, from the investor’s point of view, the new changes might seem to be bad news. Property investors who are planning to get a second property, will definitely give it a second thought.
But let’s look at it in a more neutral way. First of all, a subsidised HDB flat is sold at an affordable price and it is a privilege exclusively for Singaporean couples who have formed a family nucleus to set up their first home. It is subsidised as the government’s main objective is to build a home and shelter for Singaporeans. But if it is being used as a tool for investment, it’s not wrong for the government to impose a tax. And also, by withdrawing one of the names from the ownership, the interest of the exiting owner is no longer being protected since he has transferred his share to the other party via way of gift without any monetary consideration involved. Should the relationship between the married couple turn sour, things might get complicated as well.
Whatever it is, HDB decoupling between husband and wife is simply NOT possible anymore.
To learn more about Transfer of HDB flat Ownership , find out more from
http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/changing-owners-occupiers/change-in-ownership
Some people like to anyhow quote and anyhow interpret.
Must still check with relevant authorities to be sure. People who are thinking, please check soon because of all the complainers.
People who have done it already, shout "Heng arh!"
https://www.myexclusivecondo.com/buyer-seller-must-know/hdb_decoupling/
HDB Decoupling
My Exclusive Condo Buyer & Seller Must Know
April 5, 2016
Gone are the days when a Singaporean couple could just do a decoupling on their existing HDB flat to avoid the Additional Buyer Stamp Duty (ABSD). If you have vaguely heard about HDB Decoupling, are interested to find out more or have the intention of doing it so that you pay lesser stamp duty in your next property purchase, unfortunately you are way too late.
Decoupling – The Transfer of Ownership
So, what is HDB decoupling? It is a process whereby one owner transfers the ownership of his HDB flat to the other co-owner through way of gift. By doing so, the owner who has his ownership removed from the HDB property is considered a first time residential property buyer and will no longer be subjected to a 7% ABSD for his second residential property purchase (for Singaporean).
Since 1st April 2016, transferring of HDB ownership via way of gift between spouses will no longer be approved by HDB. The transfer of ownership within a family is still possible, subject to approval by HDB based on specific eligibility criteria. Stated in the HDB infoweb, the 4 main types of transfer of flat ownership are as follows,
◾Inclusion of owners
Eg : The owners adding the name of their son/daughter to the property.
◾Withdrawal of owners
Eg : Son or daughter withdraw his or her ownership from the flat
◾Substitution of owners
Eg : Changing of ownership from one son/daughter to another
◾Outright transfer:
Eg : Parent transferring the ownership to the son/daughter.
Other than transferring by way of gift, a resale part-share can also be done between family members. By doing so, the remaining co-owner will buy over the share of the other co-owner at a mutually agreed price. Transfer of HDB flat ownership between spouses, be it via way of gift or resale part-share will only be workable in circumstances such as demise of an owner, divorce, financial hardship etc.
Previously, a lot of ‘smart’ buyers had managed to avoid the hefty additional buyer stamp duty by doing a HDB decoupling. By doing so, not only did the buyers save on their stamp duty, they also did not need to set aside a minimum sum in their CPF Special and/or Ordinary Account if they were free from any property ownership. In other words, more CPF and/or cash were available to finance their new purchase. Well, from the investor’s point of view, the new changes might seem to be bad news. Property investors who are planning to get a second property, will definitely give it a second thought.
But let’s look at it in a more neutral way. First of all, a subsidised HDB flat is sold at an affordable price and it is a privilege exclusively for Singaporean couples who have formed a family nucleus to set up their first home. It is subsidised as the government’s main objective is to build a home and shelter for Singaporeans. But if it is being used as a tool for investment, it’s not wrong for the government to impose a tax. And also, by withdrawing one of the names from the ownership, the interest of the exiting owner is no longer being protected since he has transferred his share to the other party via way of gift without any monetary consideration involved. Should the relationship between the married couple turn sour, things might get complicated as well.
Whatever it is, HDB decoupling between husband and wife is simply NOT possible anymore.
To learn more about Transfer of HDB flat Ownership , find out more from
http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/changing-owners-occupiers/change-in-ownership
Wah so fast another nail in the coffin for OCR private properties............
OCR private property prices should be declining slowly till next recession hit, and then gap down again.........
Sayonara OCR (till 2022)........
https://www.myexclusivecondo.com/buyer-seller-must-know/hdb_decoupling/
HDB Decoupling
My Exclusive Condo Buyer & Seller Must Know
April 5, 2016
Gone are the days when a Singaporean couple could just do a decoupling on their existing HDB flat to avoid the Additional Buyer Stamp Duty (ABSD). If you have vaguely heard about HDB Decoupling, are interested to find out more or have the intention of doing it so that you pay lesser stamp duty in your next property purchase, unfortunately you are way too late.
Decoupling – The Transfer of Ownership
So, what is HDB decoupling? It is a process whereby one owner transfers the ownership of his HDB flat to the other co-owner through way of gift. By doing so, the owner who has his ownership removed from the HDB property is considered a first time residential property buyer and will no longer be subjected to a 7% ABSD for his second residential property purchase (for Singaporean).
Since 1st April 2016, transferring of HDB ownership via way of gift between spouses will no longer be approved by HDB. The transfer of ownership within a family is still possible, subject to approval by HDB based on specific eligibility criteria. Stated in the HDB infoweb, the 4 main types of transfer of flat ownership are as follows,
◾Inclusion of owners
Eg : The owners adding the name of their son/daughter to the property.
◾Withdrawal of owners
Eg : Son or daughter withdraw his or her ownership from the flat
◾Substitution of owners
Eg : Changing of ownership from one son/daughter to another
◾Outright transfer:
Eg : Parent transferring the ownership to the son/daughter.
Other than transferring by way of gift, a resale part-share can also be done between family members. By doing so, the remaining co-owner will buy over the share of the other co-owner at a mutually agreed price. Transfer of HDB flat ownership between spouses, be it via way of gift or resale part-share will only be workable in circumstances such as demise of an owner, divorce, financial hardship etc.
Previously, a lot of ‘smart’ buyers had managed to avoid the hefty additional buyer stamp duty by doing a HDB decoupling. By doing so, not only did the buyers save on their stamp duty, they also did not need to set aside a minimum sum in their CPF Special and/or Ordinary Account if they were free from any property ownership. In other words, more CPF and/or cash were available to finance their new purchase. Well, from the investor’s point of view, the new changes might seem to be bad news. Property investors who are planning to get a second property, will definitely give it a second thought.
But let’s look at it in a more neutral way. First of all, a subsidised HDB flat is sold at an affordable price and it is a privilege exclusively for Singaporean couples who have formed a family nucleus to set up their first home. It is subsidised as the government’s main objective is to build a home and shelter for Singaporeans. But if it is being used as a tool for investment, it’s not wrong for the government to impose a tax. And also, by withdrawing one of the names from the ownership, the interest of the exiting owner is no longer being protected since he has transferred his share to the other party via way of gift without any monetary consideration involved. Should the relationship between the married couple turn sour, things might get complicated as well.
Whatever it is, HDB decoupling between husband and wife is simply NOT possible anymore.
To learn more about Transfer of HDB flat Ownership , find out more from
http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/changing-owners-occupiers/change-in-ownership
This set of guidelines has always been there the last few years.
Decoupling between spouse has never been fully encouraged nor discouraged.
Luck will only favor those who act rather than those who wait. One can choose to be sidetracked by rumors or seek official position and advice. If all those who qualify decouple, there will not be enough supply to cope. So it's beneficial that the wishy washy are deterred.
If your HDB is fully paid or one partner income can support the mortgage, still can go for it. Don't listen to unofficial rumors published on April Fools Day.
Wah so fast another nail in the coffin for OCR private properties............
OCR private property prices should be declining slowly till next recession hit, and then gap down again.........
Sayonara OCR (till 2022)........
Also, the current trend for many couples is direct upgrade instead of decouple. If anything, if this measure is really added, it will speed up the upgrade to ECs and OCR PCs. So I guess will have to disappoint you for a long time more...
Wah so fast another nail in the coffin for OCR private properties............
OCR private property prices should be declining slowly till next recession hit, and then gap down again.........
Sayonara OCR (till 2022)........
although hdb decoupling allows the spouses to save on absd, one key motivating factor was because they want to hold on to their hdb after buying 2nd property.
dreamer888
08-04-16, 10:52
Too late... sighzz... wasted all my time doing ppty hunting all this while...
https://www.myexclusivecondo.com/buyer-seller-must-know/hdb_decoupling/
bargain hunter
08-04-16, 11:54
Too late... sighzz... wasted all my time doing ppty hunting all this while...
https://www.myexclusivecondo.com/buyer-seller-must-know/hdb_decoupling/
bro kelonguni said go and check it out yourself. don't just blindly believe what others write.
go down to the hdb branch office and tell them u want to gift your share of your hdb to your wife and see what they say.
bro kelonguni said go and check it out yourself. don't just blindly believe what others write.
go down to the hdb branch office and tell them u want to gift your share of your hdb to your wife and see what they say.
though i indicated 'gift' as reason for decouple but my wife still have to top up my cpf the amt of money + interest that i used to purchase the hdb. so it's not really a 'gift'.
bargain hunter
08-04-16, 12:08
though i indicated 'gift' as reason for decouple but my wife still have to top up my cpf the amt of money + interest that i used to purchase the hdb. so it's not really a 'gift'.
that's right but what i mean for bro dreamer is he should still go down to hdb branch office and check it out. anyway, nothing to lose liao.
that's right but what i mean for bro dreamer is he should still go down to hdb branch office and check it out. anyway, nothing to lose liao.
The better way is to apply in HDB portal online to check eligibility.
They will write to you or call you if you are eligible.
Then you can arrange the rest of the procedures based on their advice.
dreamer888
08-04-16, 13:08
Yes guys, I have already gotten my eligibility approved last month but I haven't got the time to do the proper procedure yet. I have emailed my HDB BO yesterday so let's see what they say.
The better way is to apply in HDB portal online to check eligibility.
They will write to you or call you if you are eligible.
Then you can arrange the rest of the procedures based on their advice.
Good luck! Do share the truth with us. Or rather, the updated truth.
Yes guys, I have already gotten my eligibility approved last month but I haven't got the time to do the proper procedure yet. I have emailed my HDB BO yesterday so let's see what they say.
bargain hunter
08-04-16, 13:51
Good luck! Do share the truth with us. Or rather, the updated truth.
yes! good luck!
though i indicated 'gift' as reason for decouple but my wife still have to top up my cpf the amt of money + interest that i used to purchase the hdb. so it's not really a 'gift'.
When (in which year) did you managed to decouple your hdb?
Too late... sighzz... wasted all my time doing ppty hunting all this while...
https://www.myexclusivecondo.com/buyer-seller-must-know/hdb_decoupling/
Good luck!
But even if decoupling is really not allowed now, you can still go for a smaller/cheaper condo if you have an over-riding needs, say to try for a particular primary school etc.
When (in which year) did you managed to decouple your hdb?
this year. just completed last month.
bargain hunter
08-04-16, 15:31
this year. just completed last month.
have u shouted heng ah? :)
this year. just completed last month.
Congrats!
Do you mind summarising the process, like how long you took, and the fees involved? Presumably no stamp duty due to transfer of gift?
After the decoupling to spouse, does the MOP restart?
Congrats!
Do you mind summarising the process, like how long you took, and the fees involved? Presumably no stamp duty due to transfer of gift?
After the decoupling to spouse, does the MOP restart?
basically process takes about 2-3 months. first time go there just fill up form, pay i tink $50 admin fee, den go again on the actual day (estimate 8 weeks later) for the completion. cost is cheap.. all in all less den $300. there is no mop. only standard ssd if u decide to sell the hdb within 4 years of decoupling.
basically process takes about 2-3 months. first time go there just fill up form, pay i tink $50 admin fee, den go again on the actual day (estimate 8 weeks later) for the completion. cost is cheap.. all in all less den $300. there is no mop. only standard ssd if u decide to sell the hdb within 4 years of decoupling.
Thanks for the summary.
Even if it is transfer by way of gift, there should be buyer stamp duty involved. If transfer 50% share then need to pay BSD on this 50% base on market value. Only inherit then can avoid BSD.
No stamp duty if it's gift
bargain hunter
08-04-16, 19:12
whoever is eligible for this de-coupling better try their luck fast. who was that mean person who started spreading "no longer allowed." (i mean not in this forum, spreading among the agents). don't wait until it becomes reality. if they accept your application now at least no regrets when the option to buy is available.
gsmsimmax3
08-04-16, 19:15
No stamp duty if it's gift
NOT true.ABSD needed for gift.
5 Manner of Property Acquisition/Transfer
5.1 The most common manner of property acquisition is by way of direct purchase.
Properties may also be acquired or transferred in the following manner : -
(a) Via Gift, Release, Settlement;
(b) Via Declaration of Trust where the beneficial interest in the property is vested in
the beneficiary;
(c) Via Letter of Authority
(d) Via Exchange
All the above manner of property acquisition will similarly be subject to ABSD,
depending on the profile of the transferee, beneficiary and the intended transferee.
invigorated
09-04-16, 12:29
whoever is eligible for this de-coupling better try their luck fast. who was that mean person who started spreading "no longer allowed." (i mean not in this forum, spreading among the agents). don't wait until it becomes reality. if they accept your application now at least no regrets when the option to buy is available.
This is not a rumour. Hdb has disallowed this. I have checked it personally. Those who did it before 1 april, congrats. Even if one applies online now, will have to state reasons for transfer, eg death of one party, divorce etc.
Regardless of whether it is disallowed, this discussion proves that property purchase (especially multiple properties) can only get harder. That's why the first priority should be to settle them first then move to other investments.
Good luck all!
invigorated
09-04-16, 13:11
Regardless of whether it is disallowed, this discussion proves that property purchase (especially multiple properties) can only get harder. That's why the first priority should be to settle them first then move to other investments.
Good luck all!
Yes agree. This is like a mini CM.. sometimes it's also heng sway.. if your house mop only ends in April, there's no way to try doing this isn't it, much as one tries to plan.
Maybe the govt is trying to get couples to go for ECs instead.
I have heard of people successfully transferring before MOP. But must pay off loan.
Whichever the case, still can give it a shot.
There are another few options though for upgraders to consider if really cannot transfer as gift. Just give it some thoughts.
I feel still can try with HDB. Pursue all options to entirety first.
Yes agree. This is like a mini CM.. sometimes it's also heng sway.. if your house mop only ends in April, there's no way to try doing this isn't it, much as one tries to plan.
Maybe the govt is trying to get couples to go for ECs instead.
This is not a rumour. Hdb has disallowed this. I have checked it personally. Those who did it before 1 april, congrats. Even if one applies online now, will have to state reasons for transfer, eg death of one party, divorce etc.
So that seems to be true. My agent friend told me he called HDB to confirm this too.
So that seems to be true. My agent friend told me he called HDB to confirm this too.
Yah now we do get a clear sensing of the abundance of HDBs that have MOP.
The route has just gotten that much tougher for HDB upgraders.
Now only left plan B, a more risky plan which I don't know if I should advocate.
Plan A B C or D will be a review soon, no plan is secret or can go into hiding unless it is not a plan.
Yah now we do get a clear sensing of the abundance of HDBs that have MOP.
The route has just gotten that much tougher for HDB upgraders.
Now only left plan B, a more risky plan which I don't know if I should advocate.
You are a thinker. I cannot think of a meaningful plan B. Please share.
Assuming own one HDB; decouple so that one party can buy another without absd, how much savings is that?
7% of $1m?
Worth it?
Assuming own one HDB; decouple so that one party can buy another without absd, how much savings is that?
7% of $1m?
Worth it?
$70k not worth it?
70K can 80% downpayment for a car.
Or use as stocks / FX capital. A lousy investor will still have 50K in 5 years. A shrewd one, easily 100k (low risk) or 200k (high risk) in a few years.
Of course, rent can recoup in 2+ years as well so depends on which angle you want to analyse.
Assuming own one HDB; decouple so that one party can buy another without absd, how much savings is that?
7% of $1m?
Worth it?
Assuming own one HDB; decouple so that one party can buy another without absd, how much savings is that?
7% of $1m?
Worth it?
dat's 2 years of rental leh...
bargain hunter
09-04-16, 17:43
This is not a rumour. Hdb has disallowed this. I have checked it personally. Those who did it before 1 april, congrats. Even if one applies online now, will have to state reasons for transfer, eg death of one party, divorce etc.
that's a pity. i hope bro dreamer can still get his done as he was halfway through, having cleared the eligibility condition.
thanks for the info!
bargain hunter
09-04-16, 17:50
Yes agree. This is like a mini CM.. sometimes it's also heng sway.. if your house mop only ends in April, there's no way to try doing this isn't it, much as one tries to plan.
Maybe the govt is trying to get couples to go for ECs instead.
in any case, if its newly MOP hdbs, its more complicated with loans involved, cash flows to consider etc. while those who have MOP long ago would probably have already done their decoupling as well.
Possible that they would honor those who were approved to be eligible.
Maybe just not allowed for new applications.
Explain nicely to HDB personnel. I am sure they can make concession for pre approved applications.
that's a pity. i hope bro dreamer can still get his done as he was halfway through, having cleared the eligibility condition.
thanks for the info!
bargain hunter
09-04-16, 19:27
Possible that they would honor those who were approved to be eligible.
Maybe just not allowed for new applications.
Explain nicely to HDB personnel. I am sure they can make concession for pre approved applications.
yes. the key is approach hdb personnel personally. if u call in of course they give u a general answer, which is no longer allowed.
proud owner
10-04-16, 00:57
that's a pity. i hope bro dreamer can still get his done as he was halfway through, having cleared the eligibility condition.
thanks for the info!
Bro BH
i thought you knew it was true the day it was announced ?
It was in HDB website ...
Didnt know Dreamer was trying to do it... i would have alerted him.....
I had warned him in the CCR discount thread.
The HDB website was last updated in October 2015. So this is an internal stance and not an official position. There is room for negotiation and appeal.
I know of people who transferred as late as 1st April and the officer in charge had no idea about this change.
Bro BH
i thought you knew it was true the day it was announced ?
It was in HDB website ...
Didnt know Dreamer was trying to do it... i would have alerted him.....
I had warned him in the CCR discount thread.
The HDB website was last updated in October 2015. So this is an internal stance and not an official position. There is room for negotiation and appeal.
I know of people who transferred as late as 1st April and the officer in charge had no idea about this change.
Officer in charge only look at the HDB website, I did once corrected the Officer in charge to look at another page of the Website.
bargain hunter
10-04-16, 19:36
in short, nothing to lose just try luck by going down personally and be polite and sincere. what's the worst that can happen, they just reject your application, that's all. don't try, don't know.
bargain hunter
10-04-16, 19:38
Bro BH
i thought you knew it was true the day it was announced ?
It was in HDB website ...
Didnt know Dreamer was trying to do it... i would have alerted him.....
bro, looks like nothing officially announced from hdb so those who are eligible, can just try. case by case. if u call in, email or ask through hdb website, of course the hdb officer play safe and just reject as the default.
proud owner
11-04-16, 01:10
bro, looks like nothing officially announced from hdb so those who are eligible, can just try. case by case. if u call in, email or ask through hdb website, of course the hdb officer play safe and just reject as the default.
it seems clear to me leh that decoupling is allowed for spouse if :
1 divorce
2 death of one partner
Anyway i feel this window will close soon ... especially when in forum ... much is being discussed on this topic ...
Govt hates it when the "Non President Scholar" man on the street manages to find a Way Around It ....
bargain hunter
11-04-16, 10:31
it seems clear to me leh that decoupling is allowed for spouse if :
1 divorce
2 death of one partner
Anyway i feel this window will close soon ... especially when in forum ... much is being discussed on this topic ...
Govt hates it when the "Non President Scholar" man on the street manages to find a Way Around It ....
OUE also found a way around ABSD and TDSR. love them! haha. newspaper reported that keppel also 'arm arm' offered delayed payment scheme but OUE one recently well publicized.
That's why I kept urging those eligible and with the intention to do it asap, 以免夜长梦多。
My opinion is that all these are pre-calculated by the Govt. When they announce GST increase, they also give you some months to prepare your purchases ahead.
If really cannot purchase in advance means either you can't afford or don't want that purchase, cannot cry foul and say Govt never give you chance. Fair and transparent.
When the MND first put in ABSD only for third property, you just knew they would be putting it for second property as well soon. Lots of warning time and signs, just need to pick them up and act accordingly.
Good luck!
it seems clear to me leh that decoupling is allowed for spouse if :
1 divorce
2 death of one partner
Anyway i feel this window will close soon ... especially when in forum ... much is being discussed on this topic ...
Govt hates it when the "Non President Scholar" man on the street manages to find a Way Around It ....
dreamer888
11-04-16, 11:43
The officer-in-charge replied in 24 hours to ask me for my flat address to check (ignoring me saying that I have received a letter from them to confirm on my eligibility).
I have replied them and asked them to send me the forms or if it is faster to do it at the BO directly.
The officers in charge may change. They need to be sure the address meets their criteria. Civil servants need to be very safe. Remember to continue to use respectful and positive language with them. Like even if they reject, ask them nicely how to appeal, who to write to etc. Can explain to them why this is important for you, but don't tell them you are looking at CCR. Home ownership everyone can empathise one...
Our thoughts and blessings are with you.
The officer-in-charge replied in 24 hours to ask me for my flat address to check (ignoring me saying that I have received a letter from them to confirm on my eligibility).
I have replied them and asked them to send me the forms or if it is faster to do it at the BO directly.
proud owner
11-04-16, 20:37
The officers in charge may change. They need to be sure the address meets their criteria. Civil servants need to be very safe. Remember to continue to use respectful and positive language with them. Like even if they reject, ask them nicely how to appeal, who to write to etc. Can explain to them why this is important for you, but don't tell them you are looking at CCR. Home ownership everyone can empathise one...
Our thoughts and blessings are with you.
hahaahhh well said
For a KelongGuni man you are very refine .......i like that
Thanks. Fingers crossed for Bro Dreamer888 though. Hope his dreams come true.
Else HDB owners may have to revert to plan B to own multiple properties in SG. I feel that the idea of the authorities is to make it so cumbersome that the cons outweigh the pros.
Assuming HDB does not allow transfer under normal situations to avoid ABSD, what will your plan B be as a HDB owner who has prepared for years for this?
hahaahhh well said
For a KelongGuni man you are very refine .......i like that
saintgtril
12-04-16, 10:24
Hi all,
I own an EC - TOP mid of 2015 (not even reach the MOP of 5 years).
I am keen to explore the path of HDB decoupling (which i think EC and HDB share the same regulations, MOP etc...).
Pardon my queries, as i am relatively new to the property stuff, what are the implications to consider? For a property that still has outstanding loan (600K ++), the new sole owner (either my wife or I) has to go through a round of TDSR? What else do i need to take note of?
Thanks in advance!
"Wisely and slow. They stumble that run fast". Friar Lawrence, in Romeo and Juliet.
One of the price to pay for the arbitrage of ECs is the MOP period, where you are not supposed to touch other private property within 5 years even if you want to.
I know someone who somehow did it, maybe paying up the mortgage in full first. But to be honest, I am not sure how it was done.
In your case, I would urge patience. Save the bullets to fight another day. Some things can't be rushed.
Hi all,
I own an EC - TOP mid of 2015 (not even reach the MOP of 5 years).
I am keen to explore the path of HDB decoupling (which i think EC and HDB share the same regulations, MOP etc...).
Pardon my queries, as i am relatively new to the property stuff, what are the implications to consider? For a property that still has outstanding loan (600K ++), the new sole owner (either my wife or I) has to go through a round of TDSR? What else do i need to take note of?
Thanks in advance!
saintgtril
12-04-16, 15:00
"Wisely and slow. They stumble that run fast". Friar Lawrence, in Romeo and Juliet.
One of the price to pay for the arbitrage of ECs is the MOP period, where you are not supposed to touch other private property within 5 years even if you want to.
I know someone who somehow did it, maybe paying up the mortgage in full first. But to be honest, I am not sure how it was done.
In your case, I would urge patience. Save the bullets to fight another day. Some things can't be rushed.
Thanks Kelonguni! Please correct me i am wrong, if my wife is made the sole owner of this EC (after the decoupling process), which makes me a person with no property, I will not be subjected to the ruling of the EC (i.e. only after EC's MOP can one buy a private property). Being a "first time" property owner, i can then "gan geong" to buy a private property under my name. Am i making sense?
If anyone knows what i can do to decouple my EC, please advise - very much appreciated!
Some underlying thoughts:
I note your advice on being calm and patience. But i am afraid of missing the boat. When the CMs are lifted (don't know when), the property price rebounds, the property price will then inflate.
Who knows, the ADSD might not be removed after-all. We never know. Only time will tell.
I do have a war chest with me. It is not enough to clear the entire outstanding EC loan, but it is enough for the down-payment of the studio condominium. I always dream of owning a second property and collect rental as a passive income. Just like you guys here. :)
I am open to any thoughts, comments, views from Kelonguni and other masters. Thanks once again!
You are already on the boat. Your EC will MOP in four more years.
People who are missing the boat are not gan cheong. Why should you be?
In any case, HDB will be pelted if they allow your case to pass. If you have a war chest already, you should have gone for PC straight instead of through EC. There are many other investments you can go for, including foreign properties. But just be very aware of their regulations.
Judging from the way things are going, the Govt will try very hard to maintain a flat, mildly appreciating or slightly downward PPI line and keep the taxes as long as politically possible. It might be the only "GST" that is widely supported by the population!
Thanks Kelonguni! Please correct me i am wrong, if my wife is made the sole owner of this EC (after the decoupling process), which makes me a person with no property, I will not be subjected to the ruling of the EC (i.e. only after EC's MOP can one buy a private property). Being a "first time" property owner, i can then "gan geong" to buy a private property under my name. Am i making sense?
If anyone knows what i can do to decouple my EC, please advise - very much appreciated!
Some underlying thoughts:
I note your advice on being calm and patience. But i am afraid of missing the boat. When the CMs are lifted (don't know when), the property price rebounds, the property price will then inflate.
Who knows, the ADSD might not be removed after-all. We never know. Only time will tell.
I do have a war chest with me. It is not enough to clear the entire outstanding EC loan, but it is enough for the down-payment of the studio condominium. I always dream of owning a second property and collect rental as a passive income. Just like you guys here. :)
I am open to any thoughts, comments, views from Kelonguni and other masters. Thanks once again!
You can also have the option of doing a "split" 4 years later if your EC loan has been redeemed and ABSD has not been removed.
Sell the EC and buy two private properties under two separate loans (two separate names).
You are already on the boat so won't really miss it.
Thanks Kelonguni! Please correct me i am wrong, if my wife is made the sole owner of this EC (after the decoupling process), which makes me a person with no property, I will not be subjected to the ruling of the EC (i.e. only after EC's MOP can one buy a private property). Being a "first time" property owner, i can then "gan geong" to buy a private property under my name. Am i making sense?
If anyone knows what i can do to decouple my EC, please advise - very much appreciated!
Some underlying thoughts:
I note your advice on being calm and patience. But i am afraid of missing the boat. When the CMs are lifted (don't know when), the property price rebounds, the property price will then inflate.
Who knows, the ADSD might not be removed after-all. We never know. Only time will tell.
I do have a war chest with me. It is not enough to clear the entire outstanding EC loan, but it is enough for the down-payment of the studio condominium. I always dream of owning a second property and collect rental as a passive income. Just like you guys here. :)
I am open to any thoughts, comments, views from Kelonguni and other masters. Thanks once again!
See below quoted from http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/conditions-after-buying&rendermode=preview
I interpret that you cannot buy a private within the MOP period, regardless of whether you can decouple or not as you are still listed as an essential occupier in your EC and has to fulfill the MOP.
But when the day you meet your MOP, you have to check if you are subjected to TDSR (60%) or MSR (30%) for EC. If it is MSR at 30%, then your spouse income must be much higher to take on the loan outstanding (if you are lucky to decouple).
QUOTE
Minimum Occupation Period (MOP)
Sale of EC
ECs can only be sold in the open market after the 5-year MOP (from TOP date) has been met.
Essential occupiers in EC
Occupiers who are essential in forming a family nucleus with you in the EC application must continue to be listed in the application, and stay in the EC during the 5-year MOP. They cannot make a separate application, or be listed as occupiers in another application to buy an HDB flat or another EC within the MOP.
Renting out your EC
Renting out the whole EC unit
Renting out the whole EC unit within the 5-year MOP is not allowed.
Renting out rooms
You do not need prior approval from HDB to rent out the bedrooms in your EC within the MOP. However, you must register the subletting of bedrooms with HDB within 7 days of doing so. You are also required to notify HDB when you renew or terminate the subletting of bedrooms, and when there are changes to your subtenants’ particulars. You can go to the HDB Branch managing your EC to register the subletting.
Buying another subsidised home
After selling your EC in the open market, you must wait 30 months before you can submit an application to buy any of these:
•A new flat from HDB
•An apartment under the Design, Build and Sell Scheme (DBSS) from developers
•Another EC from developers
Resale levy
The resale levy is meant to reduce the housing subsidy on the buyers' second subsidised flat or EC. It ensures a fairer allocation of housing subsidies among home buyers.
You are liable to pay a resale levy of $55,000:
•When you sell an EC bought with the CPF Housing Grant after meeting the MOP, and, after meeting a 30-month waiting period, buy a second subsidised flat from HDB or take over ownership of another subsidised HDB flat
•Buy an EC from a developer where the land sale was launched on or after 9 Dec 2013, including those where tenders were not closed, i.e. Westwood Avenue, Canberra Drive, and Anchorvale Crescent
If you do not intend to buy a second subsidised flat from HDB, and choose to buy a resale flat, a new DBSS flat, an EC from a developer where land sale was launched before 9 Dec 2013 or a private residential property, you need not pay the resale levy.
Interest in private property
You can invest in private residential property after the 5-year MOP.
UNQUOTE
dreamer888
13-04-16, 11:48
OK, all dreams of decoupling are smashed! The HDB BO officer called me just now and told me although they have sent me the letter earlier to confirm that I was eligible, as of 1st Apr the new ruling has kicked in and I can no longer proceed to do so. I asked about appealing but she said new ruling is effective already so no point appealing as well.
Oh well, gotta suck it up and move on....
Haiz, no choice... I already foresaw this coming.
Relook finances and consider alternative strategies.
To pay additional 7% ABSD may be very heavy, and you have to weigh it against how much you value your HDB.
The other alternative (plan B) is since you appear to be very heavyweight in terms of finance, to consider selling the HDB to buy the private property you desire under 1 name, leaving the other name for further property investments if you so wish.
Good luck bro!
OK, all dreams of decoupling are smashed! The HDB BO officer called me just now and told me although they have sent me the letter earlier to confirm that I was eligible, as of 1st Apr the new ruling has kicked in and I can no longer proceed to do so. I asked about appealing but she said new ruling is effective already so no point appealing as well.
Oh well, gotta suck it up and move on....
So decoupling of HDB flats is no longer allowed from 1st April 2016 and Singapore's Newspapers never even report anything on this new ruling/interpretation of existing ruling??? (I don't know of any one that do).
Mmm, that should be good reason for us to stop reading SPH newspapers???????????? :ashamed1:
Or rather, may be SPH newspapers should bash HDB for hiding such important new regulations or new interpretration of existing ruling (otherwise it is quite shameful indeed for missing such important changes to many Singaporeans)???????? Ask HDB, where is the accountability and transparency to begin with? :hurt:
OK, all dreams of decoupling are smashed! The HDB BO officer called me just now and told me although they have sent me the letter earlier to confirm that I was eligible, as of 1st Apr the new ruling has kicked in and I can no longer proceed to do so. I asked about appealing but she said new ruling is effective already so no point appealing as well.
Oh well, gotta suck it up and move on....
Technically not a ban. For many genuine reasons still can do so.
So decoupling of HDB flats is no longer allowed from 1st April 2016 and Singapore's Newspapers never even report anything on this new ruling/interpretation of existing ruling??? (I don't know of any one that do).
Mmm, that should be good reason for us to stop reading SPH newspapers???????????? :ashamed1:
Or rather, may be SPH newspapers should bash HDB for hiding such important new regulations or new interpretration of existing ruling (otherwise it is quite shameful indeed for missing such important changes to many Singaporeans)???????? Ask HDB, where is the accountability and transparency to begin with? :hurt:
Many people had decoupled while others for the same reason can't, so there is double standard??? Why no clarification on that??? If this is new ruling, I can understand, but if as what you said it is NOT, then that means "double standard" applied before 1 April 2016 and after??? :hurt:
Technically not a ban. For many genuine reasons still can do so.
OK, all dreams of decoupling are smashed! The HDB BO officer called me just now and told me although they have sent me the letter earlier to confirm that I was eligible, as of 1st Apr the new ruling has kicked in and I can no longer proceed to do so. I asked about appealing but she said new ruling is effective already so no point appealing as well.
Oh well, gotta suck it up and move on....
that happens when one took too long to go and buy..
some may be still waiting for the crash
dreamer888
13-04-16, 15:57
that happens when one took too long to go and buy..
some may be still waiting for the crash
I didn't take too long to go and buy. I haven't saved enough and I haven't found the ppty i wanna buy yet.
The only regret was I should have done the decoupling as soon as I got the approval. I admit my mistake on that aspect but not on the ppty purchase.
bargain hunter
13-04-16, 16:02
OK, all dreams of decoupling are smashed! The HDB BO officer called me just now and told me although they have sent me the letter earlier to confirm that I was eligible, as of 1st Apr the new ruling has kicked in and I can no longer proceed to do so. I asked about appealing but she said new ruling is effective already so no point appealing as well.
Oh well, gotta suck it up and move on....
thanks for the official but sad news...........gotta move on.
On the radio show just ended, a caller called in to ask the minister regarding HDB decoupling. The reply confirms it.
OK, all dreams of decoupling are smashed! The HDB BO officer called me just now and told me although they have sent me the letter earlier to confirm that I was eligible, as of 1st Apr the new ruling has kicked in and I can no longer proceed to do so. I asked about appealing but she said new ruling is effective already so no point appealing as well.
Oh well, gotta suck it up and move on....
Sad news. Can you just act blur and make an appointment with HDB.... Bring the approval letter down and try one last shot.
I didn't take too long to go and buy. I haven't saved enough and I haven't found the ppty i wanna buy yet.
The only regret was I should have done the decoupling as soon as I got the approval. I admit my mistake on that aspect but not on the ppty purchase.
my ex colleague already decoupled, pull out his name from hdb last year, so consider approved.??
saintgtril
14-04-16, 09:25
Thanks Kelonguni and Ilikeu! I will then sit on my EC sampan and continue building my war chest. No choice then under the EC regulation + the decoupling "loop hole" is closed. :(
You can also have the option of doing a "split" 4 years later if your EC loan has been redeemed and ABSD has not been removed.
Sell the EC and buy two private properties under two separate loans (two separate names).
You are already on the boat so won't really miss it.
See below quoted from http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/conditions-after-buying&rendermode=preview
I interpret that you cannot buy a private within the MOP period, regardless of whether you can decouple or not as you are still listed as an essential occupier in your EC and has to fulfill the MOP.
But when the day you meet your MOP, you have to check if you are subjected to TDSR (60%) or MSR (30%) for EC. If it is MSR at 30%, then your spouse income must be much higher to take on the loan outstanding (if you are lucky to decouple).
QUOTE
Minimum Occupation Period (MOP)
Sale of EC
ECs can only be sold in the open market after the 5-year MOP (from TOP date) has been met.
Essential occupiers in EC
Occupiers who are essential in forming a family nucleus with you in the EC application must continue to be listed in the application, and stay in the EC during the 5-year MOP. They cannot make a separate application, or be listed as occupiers in another application to buy an HDB flat or another EC within the MOP.
Renting out your EC
Renting out the whole EC unit
Renting out the whole EC unit within the 5-year MOP is not allowed.
Renting out rooms
You do not need prior approval from HDB to rent out the bedrooms in your EC within the MOP. However, you must register the subletting of bedrooms with HDB within 7 days of doing so. You are also required to notify HDB when you renew or terminate the subletting of bedrooms, and when there are changes to your subtenants’ particulars. You can go to the HDB Branch managing your EC to register the subletting.
Buying another subsidised home
After selling your EC in the open market, you must wait 30 months before you can submit an application to buy any of these:
•A new flat from HDB
•An apartment under the Design, Build and Sell Scheme (DBSS) from developers
•Another EC from developers
Resale levy
The resale levy is meant to reduce the housing subsidy on the buyers' second subsidised flat or EC. It ensures a fairer allocation of housing subsidies among home buyers.
You are liable to pay a resale levy of $55,000:
•When you sell an EC bought with the CPF Housing Grant after meeting the MOP, and, after meeting a 30-month waiting period, buy a second subsidised flat from HDB or take over ownership of another subsidised HDB flat
•Buy an EC from a developer where the land sale was launched on or after 9 Dec 2013, including those where tenders were not closed, i.e. Westwood Avenue, Canberra Drive, and Anchorvale Crescent
If you do not intend to buy a second subsidised flat from HDB, and choose to buy a resale flat, a new DBSS flat, an EC from a developer where land sale was launched before 9 Dec 2013 or a private residential property, you need not pay the resale levy.
Interest in private property
You can invest in private residential property after the 5-year MOP.
UNQUOTE
HDB was smart to close the loop before MAS made the monetary policy stance to neutral.
If not, there will probably be hundreds of applications to deal with every other day.
Thanks Kelonguni and Ilikeu! I will then sit on my EC sampan and continue building my war chest. No choice then under the EC regulation + the decoupling "loop hole" is closed. :(
bargain hunter
14-04-16, 10:44
my ex colleague already decoupled, pull out his name from hdb last year, so consider approved.??
name out means approved liao rite?
he can login to hdb to check and hdb will probably confirm that his singpass has no hdb to his name.
Amber Woods
14-04-16, 11:14
Ops wrong post!
Thanks Kelonguni and Ilikeu! I will then sit on my EC sampan and continue building my war chest.
Bro, some of the EC Sampans are huge man! They behave almost like cruise ships. Its a great thing you got yours too.
name out means approved liao rite?
he can login to hdb to check and hdb will probably confirm that his singpass has no hdb to his name.
Ya, name out just in time..
Lucky him, ,
Quick Summary of HDB Decoupling & HDB's April 2016 rules on Transfer" (updated)
HDB has updated their Transfer rules in April 2016. APEX LAW spoke with HDB's representatives and set out to summarize some common queries regarding HDB "decoupling" and HDB's latest (updated) April 2016 rules on Transfer of ownership.
QUESTION #1 - Is it true that HDB "decoupling" is no longer possible?
(1) It is no longer possible for MARRIED COUPLES to "decouple" their HDB flat.
(2) HDB had always been consistent with regards to their policies to enable every citizen to own a property (not own multiple properties). In this respect, transfer of HDB ownership to "decouple" so as to purchase a 2nd property and avoid ABSD Tax was never an encouraged nor legitimate reason for transfer in the first place. We can say that HDB has tightened the loose ends in their recent rules.
----------------------
QUESTION #2 - What are some considerations a MARRIED COUPLE with intentions to buy more properties in the future could make?
(1) When inititally purchasing a HDB Flat, a married couple can consider buying it in the name of 1 person instead of both people. (The spouse who is not registered as an owner will need to be listed as an essential occupier).
(2) The spouse who is not the registered owner of the HDB flat can be free to purchase a private property as sole owner (without ABSD Tax) after 5 years from the HDB purchase. (Yes, the 5 year MOP rules apply to the essential occupier as well).
(3) With 2 separately owned properties, problems may arise in cases of dispute, divorce or estate/will matters. You need to be prepared for these.
-----------------------
QUESTION #3 - What are some other scenarios where HDB change of ownership and its permutations are still possible?
(1) (FROM) Married Couple (TO) Children (must be above 21 years old)
(2) (FROM) Parent and child #1 (TO) same Parent and child #2
(3) (FROM) 2 Siblings (TO) 1 Sibling
Remarks:
Sale & Purchase or Transfer (FROM) Married COUPLE (TO) 1 of the married spouse + a child is NO LONGER ALLOWED.
https://www.facebook.com/ApexLawSG/photos/a.1123483834358811.1073741828.1123477234359471/1169609936412867/?type=3&theater
Q2. Not that easy to do that. HDB MSR rather strict. Each of the party has to earn substantially to do so right from the start. Then also got to factor in change of jobs, one party stops working. Just too complex.
Quick Summary of HDB Decoupling & HDB's April 2016 rules on Transfer" (updated)
HDB has updated their Transfer rules in April 2016. APEX LAW spoke with HDB's representatives and set out to summarize some common queries regarding HDB "decoupling" and HDB's latest (updated) April 2016 rules on Transfer of ownership.
QUESTION #1 - Is it true that HDB "decoupling" is no longer possible?
(1) It is no longer possible for MARRIED COUPLES to "decouple" their HDB flat.
(2) HDB had always been consistent with regards to their policies to enable every citizen to own a property (not own multiple properties). In this respect, transfer of HDB ownership to "decouple" so as to purchase a 2nd property and avoid ABSD Tax was never an encouraged nor legitimate reason for transfer in the first place. We can say that HDB has tightened the loose ends in their recent rules.
----------------------
QUESTION #2 - What are some considerations a MARRIED COUPLE with intentions to buy more properties in the future could make?
(1) When inititally purchasing a HDB Flat, a married couple can consider buying it in the name of 1 person instead of both people. (The spouse who is not registered as an owner will need to be listed as an essential occupier).
(2) The spouse who is not the registered owner of the HDB flat can be free to purchase a private property as sole owner (without ABSD Tax) after 5 years from the HDB purchase. (Yes, the 5 year MOP rules apply to the essential occupier as well).
(3) With 2 separately owned properties, problems may arise in cases of dispute, divorce or estate/will matters. You need to be prepared for these.
-----------------------
QUESTION #3 - What are some other scenarios where HDB change of ownership and its permutations are still possible?
(1) (FROM) Married Couple (TO) Children (must be above 21 years old)
(2) (FROM) Parent and child #1 (TO) same Parent and child #2
(3) (FROM) 2 Siblings (TO) 1 Sibling
Remarks:
Sale & Purchase or Transfer (FROM) Married COUPLE (TO) 1 of the married spouse + a child is NO LONGER ALLOWED.
https://www.facebook.com/ApexLawSG/photos/a.1123483834358811.1073741828.1123477234359471/1169609936412867/?type=3&theater
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